STEEL SCRAP WRAP: Downtrend in global markets continues
Turkey came back to the deep-sea export markets in the week ended Friday February 5, capitalizing on lower prices, while buying appetite in the Asian markets was subdued by the imminent Lunar New Year holiday.
United States export prices weakened over the period, with market participants unsure whether prices had further to fall on the basis of cheaper European deals.
- Turkey buys four deep-sea cargoes
- Cheaper European deals foster bearish sentiment in US
- Taiwanese sellers accept price cuts
- Lunar New Year damps Vietnamese buying appetite
- Indian market down on lack of activity.
Turkey returned to the deep-sea market in force this week, booking a series of UK- and Baltic Sea-origin cargoes. Turkish buyers had previously stayed out of the market in expectation of lower bulk prices, which have now been seen.
Two UK sales to Turkey were priced at $387-399 per tonne cfr for an HMS 1&2 (80:20) while two Baltic Sea cargoes were booked at $380-381 per tonne cfr for HMS 1&2 (80:20) and $390-391 per tonne cfr for bonus material.
Persistent weakness on the global scrap markets pushed US export scrap prices lower this week, with South Korean buyers coming back to the US West Coast market at a steep drop.
Lower European sales to Turkey, which continued to accumulate at lower levels, added to bearish sentiment over the period, with market participants expecting further drops.
Buying appetites in Vietnam remained suppressed this week, with purchases muted due to the Lunar New Year holiday. A rebound in Japanese scrap prices led to higher offers made to Vietnam, but these were considered too high and were not accepted by regional buyers.
steel scrap, HMS 1&2 (80:20), cfr Vietnam.
Taiwanese scrap import prices continued to fall this week, with sellers reported to be settling for lower prices ahead of the Lunar New Year, allowing regional mills to capitalize on lower deals.
Prices in India moved down as a result of poor trading conditions, with the market said to be ‘sleeping’ due to the lack of purchasing activity.
steel scrap, shredded, index, import, cfr Nhava Sheva, India.